(June 10, 2014) — Five members of the team running a $14 billion defined benefit pension fund for JP Morgan in the US have quit to join a boutique investment house.
Richard Sabo, formerly the CIO of the banking giant’s pension, has joined Spruceview Capital Partners as CEO, according to the firm’s website.
Sabo joined the boutique with four of his former colleagues from JP Morgan: Courtney Donnelly, Bryan Frackman, Renee Kelly, and Neetesh Kumar. They are now partners at Spruceview.
Spruceview has also appointed former deputy CIO for public markets and director of strategic initiatives for the Massachusetts Pension Reserve Investment Management (PRIM) Board, the website states.
Hannah Commoss, partner at the firm, left the PRIM board in October last year.
In addition, David Russ, former chief investment strategist at Credit Suisse Asset Management, has joined the firm as its CIO. Russ previously served as CIO of Dartmouth College and treasurer of the Regents of the University of California.
The firm claims to be made up of “seasoned investors who place a strong emphasis on risk management.”
“Our philosophy is to be a partner with our investors and to align our interests with theirs,” the website states. “We provide fully customized multi-asset investment solutions that are designed to meet each investor’s specific objectives.”
The Wall Street Journal reported that one of the motives behind the move was the de-risking strategy being implemented by the bank on the pension fund that shifted assets away from alternatives. The four new Spruceview partners to join from the bank oversaw a range of assets outside traditional public market stocks and bonds.
Ameeta Gosain has replaced Sabo as CIO, a source close to the pension fund confirmed.
JP Morgan declined to comment on personnel moves.
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